HONG Kong's shipping sector has 'a lot of catching up to do' in terms of its environmental efforts, especially given fast-changing regulations and technology advances, according to chairman of the Hong Kong Shipowners Association, Angad Banga.
The sector has done well, however, when it comes to driving higher value services even as its global ranking for container port traffic has slipped, Mr Banga said.
'Hong Kong is right on track on higher value maritime services as the number of companies in the sector has risen to 1,200 from around 850 before the Covid-19 pandemic, and the number of shipowners in the city has also increased.
'On the green side of things, we are slower to the game and have a lot of catching up to do to get us back on track. The government's action plan on maritime and port development announced late last year will help us to get there.'
Mr Banga was speaking in an interview on the sidelines of an international conference organized by the Asian Shipowners Association, reports HK's South China Morning Post.
Despite declining container port throughput, Hong Kong has great opportunities to transition from its historical roots and strengths in the maritime industry into more value-added services like ship management, brokering, insurance, besides legal and arbitration services, Mr Banga said.
Its advantages in those areas stem from its role as a gateway to China, which has the world's biggest shipbuilding industry and owns the largest fleet of vessels.
Having ranked as the world's top container port for most of the period from 1987 to 2004, Hong Kong last year failed for the first time to make the top 10, knocked into 11th place by Dubai's Jebel Ali port, according to shipping data provider Alphaliner.
In December the government unveiled an action plan on maritime and port development to enhance industry competitiveness and high-value services capacity through decarbonization initiatives, digitalization of processes, tax concessions and collaboration with overseas partners and neighbouring cities in Guangdong province.
Mr Banga said the government's strategy on procuring greener marine fuel by being open to various lower carbon fuels - pursuing liquefied natural gas as a transition fuel while exploring the feasibility of using green methanol to power vessels - is the right move.
Flexibility is needed given it is possible that in the future, different types of vessels plying their trade on different routes may end up using different transition fuels because of costs and availability considerations, he noted.
That is despite the fact that such a strategy may necessitate the establishment of two sets of bunkering infrastructure, which will add to costs.
'Right now it is too early to tell which alternative fuel is going to win the race,' he said. 'No shipowner or government around the world is putting all their eggs in one basket.'
Mr Banga said that to realize the government's goal of turning Hong Kong into a high-quality green fuel bunkering centre, finding suitable land in the city or neighbouring cities in Guangdong to store the fuels will be key.
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The sector has done well, however, when it comes to driving higher value services even as its global ranking for container port traffic has slipped, Mr Banga said.
'Hong Kong is right on track on higher value maritime services as the number of companies in the sector has risen to 1,200 from around 850 before the Covid-19 pandemic, and the number of shipowners in the city has also increased.
'On the green side of things, we are slower to the game and have a lot of catching up to do to get us back on track. The government's action plan on maritime and port development announced late last year will help us to get there.'
Mr Banga was speaking in an interview on the sidelines of an international conference organized by the Asian Shipowners Association, reports HK's South China Morning Post.
Despite declining container port throughput, Hong Kong has great opportunities to transition from its historical roots and strengths in the maritime industry into more value-added services like ship management, brokering, insurance, besides legal and arbitration services, Mr Banga said.
Its advantages in those areas stem from its role as a gateway to China, which has the world's biggest shipbuilding industry and owns the largest fleet of vessels.
Having ranked as the world's top container port for most of the period from 1987 to 2004, Hong Kong last year failed for the first time to make the top 10, knocked into 11th place by Dubai's Jebel Ali port, according to shipping data provider Alphaliner.
In December the government unveiled an action plan on maritime and port development to enhance industry competitiveness and high-value services capacity through decarbonization initiatives, digitalization of processes, tax concessions and collaboration with overseas partners and neighbouring cities in Guangdong province.
Mr Banga said the government's strategy on procuring greener marine fuel by being open to various lower carbon fuels - pursuing liquefied natural gas as a transition fuel while exploring the feasibility of using green methanol to power vessels - is the right move.
Flexibility is needed given it is possible that in the future, different types of vessels plying their trade on different routes may end up using different transition fuels because of costs and availability considerations, he noted.
That is despite the fact that such a strategy may necessitate the establishment of two sets of bunkering infrastructure, which will add to costs.
'Right now it is too early to tell which alternative fuel is going to win the race,' he said. 'No shipowner or government around the world is putting all their eggs in one basket.'
Mr Banga said that to realize the government's goal of turning Hong Kong into a high-quality green fuel bunkering centre, finding suitable land in the city or neighbouring cities in Guangdong to store the fuels will be key.
SeaNews Turkey